August 31, 2010

NCUA Discusses Mid-Year Call Report Results

Accordingto the NCUA's second-quarter Call Reports from America's 7,445 federally insured credit unions, credit union membership increased to 90.5 million during the second quarter; however, after credit union deposits (shares) grew at a nearly 11 percent annual rate during the first quarter, share growth slowed to 0.6 percent during the second quarter. Unsecured credit cards led loan growth at 1.7 percent. Real estate loans rose 0.4 percent, boosted in part by a 10.8 percent increase in mortgage modifications as credit unions worked to make members' homes more affordable. Used vehicle loans picked up, but new vehicle loans slowed--a sign that members are turning to less expensive cars. Aggregate delinquency and charge-off ratios inched lower in the second quarter. “However,” NCUA Chairman Debbie Matz pointed out, “credit unions in many areas continue to experience greater loan losses--particularly in states struggling with high unemployment, declining real estate values, and failing businesses.” The number of members filing for bankruptcy doubled during the second quarter. By year-end 2010, bankruptcies are on pace to exceed the total for 2009.